CAVAVIN

CAVAVIN has ambitions in Africa: The wine retailer, founded in 1985 by Michel Bourel, now has over 170 locations. It is present in Metropolitan France, French Guiana, Réunion Island, England, Switzerland, Belgium, Scotland, Luxembourg, Ivory Coast, Morocco, Congo, and Moldova.

With over 170 stores, CAVAVIN is the leader in franchise wine shop networks.

After Ivory Coast, the CAVAVIN wine shop concept strengthens its presence in Africa by opening its first unit in the Republic of Congo in Brazzaville now operational, under direct franchise.

Olivier Mermuys, General Manager, is behind the acceleration of internationalization. Michel Bourel, the founder, remains the CEO, and he has also been elected President of the French Franchise Federation. To manage this expansion, the network has a logistics platform in Guérande (Loire-Atlantique), covering an area of 4,000 m². CAVAVIN aims to continue its expansion in Africa.

A DISTINCTIVE CONCEPT

Over more than 35 years, the CAVAVIN franchise has developed a network of merchants specializing in good taste and pleasure, offering a distinctive store concept where customers enjoy discovering authentic wines.

Located in city centers (from 40 m²), on the outskirts (retail parks) or on main roads, near gourmet shops, CAVAVIN wine merchants welcome and advise customers eager to discover products from the finest French and international terroirs, in a cozy and warm atmosphere. 
 

THOUGHTFUL MERCHANDISING

Wine is a delicate, fragile, and sensitive product. That's why CAVAVIN has carefully studied and developed its own furniture, with all elements contributing to the brand's visual and graphic identity.

The CAVAVIN concept is based on a modern store layout with sleek wooden and metal furniture that highlights the products in a high-end manner. The furniture's ergonomics make it easier to display and preserve the wines, as the bottles are laid down.

The furniture also optimizes stock and gives the customer the feeling of always having something to enjoy. The layout and design of the store are carried out in consultation with our teams to optimize the shopping experience and customer flow.

MOTIVATING PROFITABILITY AND BUSINESS MODELS

A turnover of €350,000 in the third year for a single person or €1,000,000 with 3 efficient people and a delivery service, depending on the location.

A gross margin of 40-45% depending on the product mix.

The franchisee can express their personality and leverage the network by working with various commercial angles: individual customers, businesses, and associations, wine tastings, and potential events.

KEY FIGURES

The store 

• Location: Prioritize a city center location near gourmet shops and parking spaces, or an outskirt location (retail park) or on a main road.
• Surface area: Minimum sales area of 40m²
• Catchment area: Minimum of 15,000 inhabitants
• Store ambiance: Cozy and warm atmosphere

The franchise contract 

• Contract duration: 7 years
• Franchise fee: €13,500 including the creation of opening publicity
• Training fee: €5,000 for 3 weeks of training in France (living and travel expenses to be borne by the franchisee).
• For multiple stores: Negotiation on the franchise fee
• Network royalty: 2.5% of net sales payable quarterly, 70% of sales to be made with the CAVAVIN platform (adaptable for wine-producing countries)

The investment  

The franchisee's investment varies depending on the store's sales area and the geographic area, which will influence the cost of fitting out and the initial store inventory. (consider the logistics replenishment lead time)

• Initial stock: Between €25,000 and €35,000 (excl. VAT)
• Furniture: Between €12,000 and €15,000 (excl. VAT)
• Renovation: To be budgeted depending on the condition of the premises
• Personal contribution: Minimum 35% of the total investment